The purpose of the proposed project is to demonstrate a model of intervention in the mental health service delivery system at a sub-state, regional level, and to evaluate the efficacy of this model. Decentralization of mental health services is being introduced across the nation. In order to increase the system and managerial competence for service delivery at regional levels it is our goal to adapt a model and technology that have had success in other domains. Theoretical, empirical and technological underpinnings of the model derive from concepts about "system competence" and "planned change". The components of the model include (1) A particular diagnostic and problem-solving strategy; (2) The use of "third parties"; (3) Interventions that focus on organizational structure; communication processes, integrative mechanisms and problem solving behavior.